Introduction :- It is the world's fifth-largest economy by nominal GDP and the third-

largest by purchasing power parity (PPP).According to the IMF, on a per capita

income basis, India ranked and 119th by GDP Purchasing power parity (PPP) per
capita in 2018. From independence in 1947 until 1991, successive governments
promoted protectionist economic policies with extensive state intervention and
regulation; the end of the Cold War and an acute balance of payments crisis in 1991
led to the adoption of a broad liberalisation. Since the start of the 21st century,
annual average GDP growth has been 6% to 7%, and from 2014 to 2018, India was
the world's fastest growing major economy, surpassing China. Historically, India
was one of the largest economy in the world for most of the two millennia from the
1st until 19th century.
The economy slowed in 2017, due to shocks of "demonetisation" in 2016 and
introduction of Goods and Services Tax in 2017. Nearly 60% of India's GDP is driven
by domestic private consumption and continues to remain the world's sixth-largest
consumer market. Apart from private consumption, India's GDP is also fuelled
by government spending, investment, and exports. In 2018, India was the
world's tenth-largest importer and the nineteenth-largest exporter. India has been a
member of World Trade Organization since 1 January 1995. It ranks 63rd on Ease of
doing business index and 68th on Global Competitiveness Report. With 520-million-
workers, the Indian labour force is the world's second-largest as of 2019. India has
one of the world's highest number of billionaires and extreme income
inequality. Since India has a vast informal economy, barely 2% of Indians
pay income taxes.
During the 2008 global financial crisis the economy faced mild slowdown, India
undertook stimulus measures (both fiscal and monetary) to boost growth and
generate demand; in subsequent years economic growth revived. According to
2017 PricewaterhouseCoopers (PwC) report, India's GDP at purchasing power parity
could overtake that of the United States by 2050. According to World Bank, to
achieve sustainable economic development India must focus on public sector
reform, infrastructure, agricultural and rural development, removal of land and labour
regulations, financial inclusion, spur private investment and
exports, education and public health.
The service sector makes up 55.6% of GDP and remains the fastest growing sector,
while the industrial sector and the agricultural sector employs majority of the labour
force. The Bombay Stock Exchange and National Stock Exchange are one of the
world's largest stock exchanges by market capitalization. India is the world's sixth-
largest manufacturer, representing 3% of global manufacturing output and employs
over 57 million people. Nearly 70% of India's population is rural whose primary
source of livelihood is agriculture, and contributes about 50% of India's GDP. It has
the world's seventh-largest foreign-exchange reserves worth $461 billion. India has a
high national debt with 68% of GDP, while its fiscal deficit remained at 3.4% of
GDP. However, as per 2019 CAG report, the actual fiscal deficit is 5.85% of
GDP. India's government-owned banks faced mounting bad debt, resulting in low
credit growth, simultaneously the NBFC sector has been engulfed in a liquidity
crisis. India faces high unemployment, rising income inequality, and major slump
in demand. In recent years, independent economists and financial institutions have
accused the government of fudging various economic data especially GDP growth.
India ranks second globally in food and agricultural production, while agricultural
exports were $38.5 billion. The construction and real estate sector is the second
largest employer after agriculture, and a vital sector to gauge economic activity. The
Indian textiles industry is estimated at $150 billion and contributes 7% of industrial
output and 2% of India's GDP while employs over 45 million people directly.
The Indian IT industry is a major exporter of IT services with $180 billion in revenue
and employs over four million people. India's telecommunication industry is the
world's second largest by number of mobile phone, smartphone, and internet users.
It is the world's tenth-largest oil producer and the third-largest oil consumer The
Indian automobile industry is the world's fourth largest by production It has $672
billion worth of retail market which contributes over 10% of India's GDP and has one
of world's fastest growing e-commerce markets. India has the world's fourth-
largest natural resources, with mining sector contributes 11% of the country's
industrial GDP and 2.5% of total GDP. It is also the world's second-largest coal
producer, the second-largest cement producer, the second-largest steel producer,
and the third-largest electricity producer.